Research predicts ‘smart home’ revenues will reach US$60bn by 2017
The ‘smart home’ market will rise from US$25bn this year to US$60bn by 2017, driven by growth in connected entertainment, a new report from Juniper Research suggests.
Smart Home Ecosystem: Connected Devices, Service Models & Revenues 2012–2017 notes that the definition of a ‘smart home’ has evolved over recent years to incorporate all aspects of a connected life, including devices used for entertainment, control, security and health.
The emergence of connected TVs, home automation systems and smart meters – all of which are connected via broadband, whether fixed or mobile – has contributed to growth in this market and this is expected to continue, particularly as more homes adopt advanced home entertainment technologies.
The report claims that the smart home entertainment segment will account for 82pc of the total service revenue by 2017, driven by North America and Western Europe.
No smart business is an island
Interestingly, Juniper Research also notes that no stakeholders or individual members of the smart home ecosystem can succeed in isolation, and that operators, content providers and vendors need to collaborate for a mutually beneficial business model.
“Cable operators and broadband service providers have a major role to play as they have an existing billing relationship with the consumers,” said report author Nitin Bhas. “Bundling other features into existing services enable them to be in a much better position within the pyramid, compared to other new entrants.”
While these well-placed service providers are taking a proactive approach, big players such as Apple, Google and Microsoft are also in a good position to replicate their success and will likely play a major role within the smart home.
Smart home image via Shutterstock